Market Recap For October 7th, 2022

After the Monday-Tuesday market rally, stocks seemed to consolidate on Wednesday and Thursday in preparation for Friday’s jobs report.

A pullback after the report’s release, by itself, would not have been concerning to the bulls. However, the depth of the one that transpired on Friday could be.

Yesterday’s Sector Performance

Energy didn’t end up in the green on Friday, but the sector led all others anyway.

Technology and Discretionary stocks took the biggest hits.

Five-Day Sector Performance

Energy led the market every day last week, obviously winning the week as well.

Real Estate struggled most of the week, ending up at the bottom.

ETF Trade Watch

Energy Select Sector SPDR (XLE)

Real Estate Select Sector SPDR (XLRE)

Oil has been on quite the run lately, but it will cool off eventually. However, as long as the rally continues, look for the XLE to rally onward.

Real Estate has been very weak since the market’s peak in August. If stocks push lower next week, expect Real Estate, and its XLRE, to possibly lead the way.

Good luck!